Press Release: May 11, 2020
The Bitcoin halving is only a few hours away, and the Bitcoin price has started to show a decline from US$9,950 since May 10 at 9 am. Bitcoin previously has fallen to approximately US$8,100 but recovered to USD$8,819 on the very same day.
Bitcoin has been and still is the most trendy keyword these days. In the last month, Google Trend showed a chart with the skyrocketed graph for searching the keyword “Bitcoin Halving” from Google.
The halving was first designed to effectively maintain the value of Bitcoin by mechanically dropping the supply, which is in contrast to the 'quantitative easing' used by many central banks to increase liquidity through the purchase of government bonds. The first and the second halving worked beautifully and brought the price from $15 in 2012 to approximately $20,000 in 2017. Nevertheless, people are expecting a different outcome for the upcoming halving by studying recent patterns of other cryptocurrencies’ halvings.
Many Bitcoin traders are paying great attention to this halving in anticipation of the 'big price fluctuation' that will come after the event. There are perspectives that still believe the price will go up like a report from Bloomberg, <Bitcoin Maturation Leap>, stated that "Bitcoin is preparing a monumental rally similar to the rally in 2017. Bitcoin is expected to benefit from the financial market turmoil." On the other hand, instead of a big price surge, many skeptics say the rally of the price surge from the halving has ended, and the price will drop significantly. Only the time can tell which side is correct after the halving, but optimists and skeptics commonly predict 'big price volatility'.
This is the time where you had to act wisely and diversify your investment strategies. For traditional spot traders, there are no ways to profit when the price goes down. However, cryptocurrency derivatives exchanges with perpetual contracts such as MCS (MyCoinStory.com) and Bitmex shine in this volatile market since one can hedge by using short and make a great profit.
The third halving will be at a height of 630,000 blocks, and there are less than 50 blocks left. It is the time to turn your eyes from the spot and to the derivatives, and prepare for the worst.